- Maryland is a FULL PRICE lien state for commercial projects, UNPAID BALANCE for residential projects.
- Remote Contractors have lien rights in Maryland (private jobs only).
- Every newly erected building and every building repaired, rebuilt or improved to the extent of 15% of its value, is subject to the establishment of a mechanic’s lien.
- Additional remedies may be available under the state’s Construction Trust Fund statutes.
Notice Speed Bumps
- Important Reminder: Claim amounts are required on all statutorily required NTOs.
- Notices are required to contain first and last furnishing dates.
- If there is more than one owner, the subcontractor may comply with this section by giving the notice to any of the owners.
- The notice is timely if mailed within 120 days but even though it is not received by the owner until after 120 days.
Mechanic’s Lien Speed Bumps
- In Maryland, a contractor does not have a lien until the court says it has a lien. A Maryland contractor must file a Petition to Establish a Lien and then go to a Show Cause hearing so that the court can establish an "Interlocutory Lien."A contractor has no lien until this happens.
- In Maryland, it is possible to file a petition to establish and enforce the mechanic’s lien at the same time (“Petition to Establish and Enforce Mechanic’s Lien.”)
- Certain common elements installed in connection with the development of all lots in a subdivision are subject to the establishment of a mechanic’s lien on a pro rata basis to the number of lots being developed.
Foreclosure Speed Bumps
- if the court enters an interlocutory order establishing a lien, or if the lien claimant files a written request for a trial, the matter will proceed to trial. At the trial, the lien claimant must prove by a “preponderance of the evidence” that he or she is entitled to a Mechanic’s Lien. In other words, the lien claimant must show that, more likely than not, he or she is entitled to a lien based on the evidence presented at trial. At the conclusion of the trial, a final order will be entered either continuing or terminating an interlocutory lien, or, if there has been no interlocutory order, establishing or denying the lien.
- Once the court establishes the validity of the lien, the lien claimant must file a Petition to Enforce the Lien or to execute any bond given to obtain a release of the lien. The Petition must be filed within 1 year after the date on which the Petition to Establish the Lien was filed.
- Once a Petition to Enforce is filed, the court will issue a “Final Order Establishing Mechanic’s Lien and Directing Sale of Property.” This Order is also known as a “Decree.” The Decree simply states that if the amount due from the owner is not paid within the time period specified, the land will be sold to satisfy the debt. This time period shall not be more than 30 days from the date of the Decree.